You've paid your HOA assessments yet the common areas are unmaintained and the pool is closed, having turned into urban pond that's a mosquito breeding ground. It's not fair.
Might people who might feel that way toward their HOAs -- which as the perfessor and I have noted aren't winning popularity contests and continue to receive negative media attention -- take them to court and demand a refund or credit of their assessments?
If they do, the might become part of a fledgling trend to sue deep pocketed defendants who might otherwise have them legally outgunned in court in the no-lawyer courtroom: small claims. This story reports on how large companies such as Honda and AT&T are getting sued in small claims and facing judgments.
Saturday, March 03, 2012
Friday, March 02, 2012
THE KANGAROO STAYS! | Weird News - Y100 - Miami's Hit Music Station
THE KANGAROO STAYS! | Weird News - Y100 - Miami's Hit Music Station
Nice to hear that the HOA changed its mind. It seems that Mike will only be living in the HOA for a year or so and then he is off to a wild animal park. This article has some cute kangaroo photos. Thanks to Fred Pilot for the link.
A local family has won a battle with their HOA over an unusual pet.
The Dreis family has a 6-month-old kangaroo, Mike.
But they didn’t get Mike just for fun – he’s actually there to help the family’s 16-year-old special-needs daughter, Kala.
------------------------------------Nice to hear that the HOA changed its mind. It seems that Mike will only be living in the HOA for a year or so and then he is off to a wild animal park. This article has some cute kangaroo photos. Thanks to Fred Pilot for the link.
Thursday, March 01, 2012
Capitol Alert: Housing meltdown dropped California's home ownership rate
Capitol Alert: Housing meltdown dropped California's home ownership rate
The housing industry meltdown in California sharply reversed a trend of steadily increasing homeownership, a new statistical compilation by the Census Bureau reveals.
The result: The percentage of Californians who live in homes that they and their families own dipped to 55.3 percent in 2011, the second lowest rate of any state, just ahead of New York's 53.6 percent.
The current California level is just about where it was during the 1980s and 1990s before climbing to as high as 60.2 percent in 2006, just before the housing market implosion.
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Wow. This is a national trend, but a drop of almost five percentage points is huge. Thanks to Fred Pilot for the link
Condo Complex Walls Collapse In January, Still Not Fixed - Denver News Story - KMGH Denver
Condo Complex Walls Collapse In January, Still Not Fixed - Denver News Story - KMGH Denver
LAKEWOOD, Colo. -- Gaping holes in walls, sunlight streaming in through electrical sockets, a bathtub exposed.This is the way it has been for almost two months now at the Snowbird Condos on Zang Street in Lakewood. Brick walls collapsed on two of the buildings during a wind storm at the beginning of January.
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Thanks to Fred Pilot for this link to yet another collapsing condo. In this case the word "collapse" is used literally.
LAKEWOOD, Colo. -- Gaping holes in walls, sunlight streaming in through electrical sockets, a bathtub exposed.This is the way it has been for almost two months now at the Snowbird Condos on Zang Street in Lakewood. Brick walls collapsed on two of the buildings during a wind storm at the beginning of January.
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Thanks to Fred Pilot for this link to yet another collapsing condo. In this case the word "collapse" is used literally.
Tuesday, February 28, 2012
Stockton's options nearly all bad - Bee Editorials - Modbee.com
Stockton's options nearly all bad - Bee Editorials - Modbee.com
"Every local elected official should be paying close attention to what is happening in the city of Stockton today. Our neighbor to the north, California's 13th largest city with a population of approaching 300,000 people, is flirting with bankruptcy. The City Council is expected to approve an eight-point plan this evening that calls for the city to suspend approximately $2 million in bond payments through the end of the current fiscal year. The plan also calls for the city to embark on two months of private discussions with its bond holders, city employee unions and any other creditors with at least $5 million in claims against the city to determine if parties can reach accommodations that will allow Stockton to avoid bankruptcy. If the council agrees — and it really has no other viable option — Stockton will become the first city in the state to undergo the AB 506 process, a formalized mediation period designed to help jurisdictions restructure their debts and avoid municipal bankruptcy."
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This is a grim situation, obviously. As the headline points out, Stockton's unemployment rate is almost 16% and they are second only to Las Vegas in their foreclosure rate. It is hard to see how this city can strike a deal that will hold off Chapter 9 proceedings for very long.Monday, February 27, 2012
Calculated Risk: New Home Sales: 2011 Still the Worst Year, "Distressing Gap" remains very wide
Calculated Risk: New Home Sales: 2011 Still the Worst Year, "Distressing Gap" remains very wide
"Even with the upward revisions to new homesales
in October, November and December, 2011 was the worst year for new home sales since the Census Bureau started tracking sales in 1963. The three worst years were 2011, 2010, and 2009 with sales of 304, 323 and 375 thousand respectively."
--------------------------------
People keep trying to talk up the market by finding a single statistic here or there that looks like it is going up. But the unavoidable fact is that the new housing market is getting worse, year by year.
"Even with the upward revisions to new home
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People keep trying to talk up the market by finding a single statistic here or there that looks like it is going up. But the unavoidable fact is that the new housing market is getting worse, year by year.
Sunday, February 26, 2012
Rocklin Considering Banning Residents From Smoking Outside Their Own Homes « CBS Sacramento
Rocklin Considering Banning Residents From Smoking Outside Their Own Homes « CBS Sacramento
ROCKLIN (CBS13) – A Rocklin resident has asked the City Council to consider a ban on smoking that some say goes way too far.
The Rocklin City Council was asked to consider making it against the law for smokers to smoke anywhere outside on their property.
Rocklin City Manager Rick Horst said the city has “no intention of considering the matter.”
One homeowner complained about smoke coming from a neighbors’ backyard, saying it caused health problems for their kids.
------------------------
At last. A city official with common sense. There is hope.
Wyoming House advances doomsday bill
Wyoming House advances doomsday bill
Where to begin? First, note how far the craziness on the right has gone. Now we have elected Republicans legislating for the post-apocalypse. Second, they keep telling us how much they revere the US Constitution, but they can't wait to re-institute the Articles of Confederation when the states could act like nations. Third, if Wyoming had an aircraft carrier, where within the borders of the great nation of Wyoming would they put it? Fourth, if you want to see where these elected wing nuts got the idea, check this out.
"CHEYENNE — State representatives on Friday advanced legislation to launch a study into what Wyoming should do in the event of a complete economic or political collapse in the United States. House Bill 85 passed on first reading by a voice vote. It would create a state-run government continuity task force, which would study and prepare Wyoming for potential catastrophes, from disruptions in food and energy supplies to a complete meltdown of the federal government. The task force would look at the feasibility of Wyoming issuing its own alternative currency, if needed. And House members approved an amendment Friday by state Rep. Kermit Brown, R-Laramie, to have the task force also examine conditions under which Wyoming would need to implement its own military draft, raise a standing army, and acquire strike aircraft and an aircraft carrier."
--------------------------------------------Where to begin? First, note how far the craziness on the right has gone. Now we have elected Republicans legislating for the post-apocalypse. Second, they keep telling us how much they revere the US Constitution, but they can't wait to re-institute the Articles of Confederation when the states could act like nations. Third, if Wyoming had an aircraft carrier, where within the borders of the great nation of Wyoming would they put it? Fourth, if you want to see where these elected wing nuts got the idea, check this out.
Foreclosure settlement a failure of law, a triumph for bank attorneys - The Washington Post
Foreclosure settlement a failure of law, a triumph for bank attorneys - The Washington Post
We never want to see an innocent party “accidentally” evicted from a home. The legal system has evolved so this has become a “legal impossibility.” Imagine returning home from work or vacation to find the front door padlocked, the belongings strewn all over the block, a big orange sticker screaming “FORECLOSED” on the garage door, with an auction sign in the front lawn. Now imagine that this occurred even though you are not in default or even delinquent on payments. Thanks to the robosigning banks, this legal impossibility has happened repeatedly, even to homeowners who paid cash for their houses and had no mortgages. Imagine that — foreclosed with no mortgage.
-------------------------
Barry Ritholtz nails it. Here's the #1 reason why the foreclosure settlement (the "terms" of which are still a secret) is so awful.
We never want to see an innocent party “accidentally” evicted from a home. The legal system has evolved so this has become a “legal impossibility.” Imagine returning home from work or vacation to find the front door padlocked, the belongings strewn all over the block, a big orange sticker screaming “FORECLOSED” on the garage door, with an auction sign in the front lawn. Now imagine that this occurred even though you are not in default or even delinquent on payments. Thanks to the robosigning banks, this legal impossibility has happened repeatedly, even to homeowners who paid cash for their houses and had no mortgages. Imagine that — foreclosed with no mortgage.
-------------------------
Barry Ritholtz nails it. Here's the #1 reason why the foreclosure settlement (the "terms" of which are still a secret) is so awful.
Saturday, February 25, 2012
The "robo-signing" settlement won’t help homeowners, and it doesn’t hurt the banks. - Slate Magazine
The "robo-signing" settlement won’t help homeowners, and it doesn’t hurt the banks. - Slate Magazine
The main motivation behind the administration’s indulgence of serious criminality evidently is fear of the consequences of taking tough action on individual bankers. And maybe officials are right to be afraid, given the massive size of the banks in question relative to the economy...The message to bank executives today is simple: build your bank to be as big as possible—and then keep growing. If you manage to become big enough, you and your employees are not just too big to fail, but also too big to jail.
-----------------------------
This explanation makes sense to me. These big banking corporations are above the law.
The main motivation behind the administration’s indulgence of serious criminality evidently is fear of the consequences of taking tough action on individual bankers. And maybe officials are right to be afraid, given the massive size of the banks in question relative to the economy...The message to bank executives today is simple: build your bank to be as big as possible—and then keep growing. If you manage to become big enough, you and your employees are not just too big to fail, but also too big to jail.
-----------------------------
This explanation makes sense to me. These big banking corporations are above the law.
Insider Says Wells Fargo’s Independent Foreclosure Review for OCC is “a Sham” - Mandelman Matters
Insider Says Wells Fargo’s Independent Foreclosure Review for OCC is “a Sham” - Mandelman Matters
"“I was hired as one of those “Independent File Review Specialist” at a company called Promontory working on Wells Fargo Bank. I have 15 years industry experience in all facets of the mortgage & title industry, and just needed a job at the moment. I must say the whole project is a mess, and a terrible joke on the victims of foreclosure and the American people. It’s a total sham.”
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"“I was hired as one of those “Independent File Review Specialist” at a company called Promontory working on Wells Fargo Bank. I have 15 years industry experience in all facets of the mortgage & title industry, and just needed a job at the moment. I must say the whole project is a mess, and a terrible joke on the victims of foreclosure and the American people. It’s a total sham.”
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Friday, February 24, 2012
Case shines light on how much power private security has when policing neighborhoods - chicagotribune.com
Case shines light on how much power private security has when policing neighborhoods - chicagotribune.com
"It's a massive, ad hoc privatization of government services," said Evan McKenzie, a University of Illinois at Chicago associate professor of political science and critic who has written two books on the topic. "That's why you get these weird situations.
"It makes sense to (homeowners groups) from a property-management perspective," he said. "But if you view it another way, the actions of any government are supposed to be limited by concepts of civil liberties. Civil liberties don't always apply here."
An Illinois appeals court in a strongly worded ruling last month found that Lake Holiday's practice of stopping and detaining drivers for violating homeowners association rules was unlawful. The court also found that the association's use of amber-colored flashing lights on its vehicles was unlawful and that the association could be held liable for Poris' false imprisonment claim.
A LaSalle County judge had previously ruled in favor of the homeowners association.
------------------------
Indeed. I couldn't have said it better myself.
Here's the meat of the opinion:
"As set forth above, the Association's security department's practices of stopping and detaining drivers for violating Association rules and using amber flashing and oscillating lights on its security vehicles are unlawful. Thus, the trial court erred in granting summary judgment to the Association on those issues. We affirm the court's grant of summary judgment to the Association on plaintiff's claims that the Association's use of recording equipment and radar violate Illinois law. However, we reverse and remand for the trial court to grant summary judgment to plaintiff on his claims that the Association's practices of stopping and detaining drivers for rule violations and of using amber lights on their security vehicles are unlawful...Because Podnar restrained plaintiff for violating an Association rule, not a criminal law, plaintiff established the elements necessary for his false imprisonment claim. The trial court erred in granting summary judgment to the Association on that count. We reverse and remand to the trial court to enter summary judgment in favor of plaintiff on the liability portion of his false imprisonment cause of action and to determine plaintiff's damages."
The case is:
KENNETH E. PORIS, Plaintiff-Appellant, v. LAKE HOLIDAY PROPERTY OWNERS ASSOCIATION, INC., GEORGE LEIDOLF, JAMES MORAN, STEVEN CONDON, DOROTHY FLEMING, JAMES BYRNE, MICHAEL IVANAUSKAS, CINDY KAMINKY and MATTHEW CLIFFORD, Defendants-Appellees.
No. 3-11-0131
APPELLATE COURT OF ILLINOIS, THIRD DISTRICT
2012 Ill. App. LEXIS 42; 2012 IL App (3d) 110131
January 24, 2012, Opinion Filed---------------
"It's a massive, ad hoc privatization of government services," said Evan McKenzie, a University of Illinois at Chicago associate professor of political science and critic who has written two books on the topic. "That's why you get these weird situations.
"It makes sense to (homeowners groups) from a property-management perspective," he said. "But if you view it another way, the actions of any government are supposed to be limited by concepts of civil liberties. Civil liberties don't always apply here."
An Illinois appeals court in a strongly worded ruling last month found that Lake Holiday's practice of stopping and detaining drivers for violating homeowners association rules was unlawful. The court also found that the association's use of amber-colored flashing lights on its vehicles was unlawful and that the association could be held liable for Poris' false imprisonment claim.
A LaSalle County judge had previously ruled in favor of the homeowners association.
------------------------
Indeed. I couldn't have said it better myself.
Here's the meat of the opinion:
"As set forth above, the Association's security department's practices of stopping and detaining drivers for violating Association rules and using amber flashing and oscillating lights on its security vehicles are unlawful. Thus, the trial court erred in granting summary judgment to the Association on those issues. We affirm the court's grant of summary judgment to the Association on plaintiff's claims that the Association's use of recording equipment and radar violate Illinois law. However, we reverse and remand for the trial court to grant summary judgment to plaintiff on his claims that the Association's practices of stopping and detaining drivers for rule violations and of using amber lights on their security vehicles are unlawful...Because Podnar restrained plaintiff for violating an Association rule, not a criminal law, plaintiff established the elements necessary for his false imprisonment claim. The trial court erred in granting summary judgment to the Association on that count. We reverse and remand to the trial court to enter summary judgment in favor of plaintiff on the liability portion of his false imprisonment cause of action and to determine plaintiff's damages."
The case is:
No. 3-11-0131
APPELLATE COURT OF ILLINOIS, THIRD DISTRICT
2012 Ill. App. LEXIS 42; 2012 IL App (3d) 110131
January 24, 2012, Opinion Filed
Wednesday, February 22, 2012
Man admits embezzling from Wisconsin, other homeowner groups - TODAY'S TMJ4
Man admits embezzling from Wisconsin, other homeowner groups - TODAY'S TMJ4
Palmer owned and operated Home Owner Association Services, which provided management services and managed accounts for homeowner associations in Missouri, Kansas, Wisconsin, and Illinois.
Prosecutors say when Palmer closed the company's Kansas City office in March 2011, $751,302 was missing from the accounts of 32 homeowner associations.
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Thanks to Fred Pilot for this link to yet another of the dozens and dozens of HOA/condo manager frauds that have taken place in recent years. But remember: all of them are isolated instances that do not point to the need for government oversight of this industry.
Monday, February 20, 2012
Courts order demolition of $1.1 million Macomb County mansion built too close to property line | Detroit Free Press | freep.com
Courts order demolition of $1.1 million Macomb County mansion built too close to property line | Detroit Free Press | freep.com
The Michigan Court of Appeals has told a couple they have to tear down all or part of their $1.1 million mansion because they built it too close to their property lines.
The order came in a lawsuit a neighboring couple filed in 2004 against Simon and Saca Palushaj over their 9,000-square-foot house in Macomb County’s Washington Township, 25 miles north of Detroit...The Thoms’ attorney, Thomas Kalas, said he was not surprised by the ruling because courts already have determined deed restrictions are legally enforceable. “These are not new or novel issues,” Kalas said. “Deed-restriction law is pretty much settled. You have to abide by them.”
--------------------
Don Nordeen sent this link to a pretty extreme example of the way US courts view deed restrictions. Historically British courts were somewhat dubious about deed restrictions because they thought over time use restrictions would accumulate and reduce the value of property, but as we know the US judiciary buys the argument that restrictions are good for property values because they prevent unwanted uses of land. The truth is not that simple--either way--but of course now the real estate development industry has taken this simple tool and injected it with steroids and growth hormones and created the homeowner association-run subdivision.
The Michigan Court of Appeals has told a couple they have to tear down all or part of their $1.1 million mansion because they built it too close to their property lines.
The order came in a lawsuit a neighboring couple filed in 2004 against Simon and Saca Palushaj over their 9,000-square-foot house in Macomb County’s Washington Township, 25 miles north of Detroit...The Thoms’ attorney, Thomas Kalas, said he was not surprised by the ruling because courts already have determined deed restrictions are legally enforceable. “These are not new or novel issues,” Kalas said. “Deed-restriction law is pretty much settled. You have to abide by them.”
--------------------
Don Nordeen sent this link to a pretty extreme example of the way US courts view deed restrictions. Historically British courts were somewhat dubious about deed restrictions because they thought over time use restrictions would accumulate and reduce the value of property, but as we know the US judiciary buys the argument that restrictions are good for property values because they prevent unwanted uses of land. The truth is not that simple--either way--but of course now the real estate development industry has taken this simple tool and injected it with steroids and growth hormones and created the homeowner association-run subdivision.
Foreclosure abuse rampant across U.S., experts say | Reuters
Foreclosure abuse rampant across U.S., experts say | Reuters
A report this week showing rampant foreclosure abuse in San Francisco reflects similar levels of lender fraud and faulty documentation across the United States, say experts and officials who have done studies in other parts of the country.
The audit of almost 400 foreclosures in San Francisco found that 84 percent of them appeared to be illegal, according to the study released by the California city on Wednesday.
--------------------------------
Incredible, isn't it? Where are the criminal prosecutions of these people?
Saturday, February 18, 2012
Condo Relief -- Extension of the Florida Distressed Condominium Relief Act ? | The National Law Review
Condo Relief -- Extension of the Florida Distressed Condominium Relief Act ? | The National Law Review
See my post below below for the reference to Florids HB 319, which includes a three-year extension of this act. As explained by attorney Alexander Dobrev:
"As a reminder, the Distressed Condominium Relief Act marked a dramatic shift in Florida law, encouraging the bulk acquisition of condominium projects by protecting the acquirer against some significant liabilities which could be inherited from the original developer (a.k.a. "successor developer" liabilities), while allowing the acquirer to retain certain useful and valuable rights with respect to the operations, repositioning and eventual disposition of the assets.
See my post below below for the reference to Florids HB 319, which includes a three-year extension of this act. As explained by attorney Alexander Dobrev:
"As a reminder, the Distressed Condominium Relief Act marked a dramatic shift in Florida law, encouraging the bulk acquisition of condominium projects by protecting the acquirer against some significant liabilities which could be inherited from the original developer (a.k.a. "successor developer" liabilities), while allowing the acquirer to retain certain useful and valuable rights with respect to the operations, repositioning and eventual disposition of the assets.
"As the Act's sunset date of July 1, 2012 approaches, liability concerns relating to statutory warranties on units and common elements, unfunded reserves, past due assessments or deficit funding obligations, the acts and/or omissions of the prior developer's board of directors, and the like, are likely to increase and to add downward pressures on the still distressed condominium market."
Suburbs May be Losing Their Luster to Home Buyers - Yahoo! Finance
Suburbs May be Losing Their Luster to Home Buyers - Yahoo! Finance
With gas prices hitting record highs the past few years, long commutes into city centers are becoming pricier, and current and future homeowners are thinking more about proximity to work and play when looking for housing. There's a new emphasis on smaller, better located homes, Morici says, prompting more construction of multi-family residences closer to cities.
The legacy of the housing bubble and the still-unsteady jobs market has also played a role. "Many young workers may need to move to stay employed and are wary of being tied to a house they may not be able to sell," Morici says. "Hence, more young families are opting to rent."
All of this adds up to more challenges for the housing market when it comes to selling through the enormous overhang of supply, and calls into the question the dynamics of the housing market going forward. After all, rental housing tends to be concentrated in urban areas, not the suburbs.
So does a new preference (and in some cases necessity) to rent mean an end to suburbs and a revival of downtown, city living?
------------
Thanks to Fred Pilot for sending this link. James Howard Kunstler has been making this point for years now, but in much more scathing terms. He thinks that instead of our young people learning how to make cities more livable they should be learning how to take care of the mules they will soon be riding.
Arizona Senators debate HOA legal status « HOA Constitutional Government
Arizona Senators debate HOA legal status « HOA Constitutional Government
Take a look at this remarkable post by George Staropoli, and the even more remarkable video that he links to, where you hear Arizona legislators actually discussing whether private corporations should be able to enforce their rules on...public roads. The bill in question is SB 1113.
Read this. How does subsection B grab you?
Take a look at this remarkable post by George Staropoli, and the even more remarkable video that he links to, where you hear Arizona legislators actually discussing whether private corporations should be able to enforce their rules on...public roads. The bill in question is SB 1113.
Read this. How does subsection B grab you?
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 33, chapter 16, article 1, Arizona Revised Statutes, is amended by adding section 33-1817, to read:
33-1817. Community authority over public roadways; exemption
A. Notwithstanding any provision in the community documents, after the period of declarant control, an association has no authority over and shall not regulate any roadway for which the ownership has been dedicated to or is otherwise held by a governmental entity.
B. This section does not apply to a planned community located in an unincorporated area of a county.H 319 -- REPRESENTATIVE GEORGE MORAITIS MALARKEY
H 319 -- REPRESENTATIVE GEORGE MORAITIS MALARKEY
"To be very honest I have barely ever seen more malarkey than the excuses Representative George Moraitis offered to defend his House Bill 319 in the Sun Sentinel last Tuesday, especially after adding amendments to this bill which clearly made it an anti-owner bill."
-----------------------
That is Jan Bergemann's take on the huge bill that is making its way through the Florida legislature. Read Jan's analysis to see why he believes that a bill that had potential is now a turkey. He is reacting to an op-ed that Moraitis wrote in which he defends a bank goodie contained in the bill (see below) and claims that he is "clarifying" existing law. I love it when legislators dump a ton of complicated verbiage on the public and claim they are clarifying things for us. The current full text of the bill, 75 pages in length, is here.
I have also linked to the latest legislative analysis of the bill.
The bill covers many different issue, several of which are discussed in Jan's post. There is a nice little goodie for the banks: letting them off the hook for paying attorney fees, interest, costs, and late fees on foreclosed units. That's the provision Moraitis is defending in his op-ed. There is also an extension of the Distressed Condominium Relief Act to 2015. It would have expired this year. That Act is intended to make it easier and less risky for bulk buyers of condo units in failed/failing projects to do so. The Act allows them to assume some developer rights without assuming all the developer responsibilities.
To me, the moral of the story is that the condominium as a form of ownership is so fragile that it can't survive without all this endless "clarification" that is really complication, and constant gimmes and goodies for banks, vulture capitalists, developers, lawyers, managers, and so forth to induce them to somehow keep this institution held more or less together with duct tape and baling wire. When you look through all the verbiage, all these schemes come back to one strategy: more responsibilities and less power and freedom for the unit owners. If you don't believe, me, check out Moraitis' next project, which is to make it easier for associations to foreclose on owners when the banks won't:
"The root cause of many associations' current financial problems is the number of unit owners not paying their fair share of assessments. I am co-sponsoring legislation that will give courts greater flexibility to move foreclosures forward when the lenders fail to pursue cases to the financial detriment of our associations. Through this, units will be able to be resold to new paying owners more quickly, improving the financial condition of our homeowners associations."
"To be very honest I have barely ever seen more malarkey than the excuses Representative George Moraitis offered to defend his House Bill 319 in the Sun Sentinel last Tuesday, especially after adding amendments to this bill which clearly made it an anti-owner bill."
-----------------------
That is Jan Bergemann's take on the huge bill that is making its way through the Florida legislature. Read Jan's analysis to see why he believes that a bill that had potential is now a turkey. He is reacting to an op-ed that Moraitis wrote in which he defends a bank goodie contained in the bill (see below) and claims that he is "clarifying" existing law. I love it when legislators dump a ton of complicated verbiage on the public and claim they are clarifying things for us. The current full text of the bill, 75 pages in length, is here.
I have also linked to the latest legislative analysis of the bill.
The bill covers many different issue, several of which are discussed in Jan's post. There is a nice little goodie for the banks: letting them off the hook for paying attorney fees, interest, costs, and late fees on foreclosed units. That's the provision Moraitis is defending in his op-ed. There is also an extension of the Distressed Condominium Relief Act to 2015. It would have expired this year. That Act is intended to make it easier and less risky for bulk buyers of condo units in failed/failing projects to do so. The Act allows them to assume some developer rights without assuming all the developer responsibilities.
To me, the moral of the story is that the condominium as a form of ownership is so fragile that it can't survive without all this endless "clarification" that is really complication, and constant gimmes and goodies for banks, vulture capitalists, developers, lawyers, managers, and so forth to induce them to somehow keep this institution held more or less together with duct tape and baling wire. When you look through all the verbiage, all these schemes come back to one strategy: more responsibilities and less power and freedom for the unit owners. If you don't believe, me, check out Moraitis' next project, which is to make it easier for associations to foreclose on owners when the banks won't:
"The root cause of many associations' current financial problems is the number of unit owners not paying their fair share of assessments. I am co-sponsoring legislation that will give courts greater flexibility to move foreclosures forward when the lenders fail to pursue cases to the financial detriment of our associations. Through this, units will be able to be resold to new paying owners more quickly, improving the financial condition of our homeowners associations."
How Citibank Dumped Lousy Mortgages on the Government - ProPublica
How Citibank Dumped Lousy Mortgages on the Government - ProPublica
"Citigroup agreed yesterday to pay $158 million to settle a lawsuit over bad loans that the bank passed on to the Federal Housing Administration to insure. The whistle-blower who originally brought the case, Sherry Hunt, an employee of Citi's mortgage department, said the company actively undermined the process that was supposed to check for fraud in order to push through reckless loans and get higher profits."
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Yet another ripoff by a "too big to fail" bank. Pay some money, nobody goes to jail.
"Citigroup agreed yesterday to pay $158 million to settle a lawsuit over bad loans that the bank passed on to the Federal Housing Administration to insure. The whistle-blower who originally brought the case, Sherry Hunt, an employee of Citi's mortgage department, said the company actively undermined the process that was supposed to check for fraud in order to push through reckless loans and get higher profits."
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Yet another ripoff by a "too big to fail" bank. Pay some money, nobody goes to jail.
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